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26 Oct 2023 11:01
26 October 2023
ETHERNITY NETWORKS LTD
("Ethernity" or the "Company")
Statement regarding share price
Ethernity Networks Ltd (AIM: ENET.L; OTCMKTS: ENETF), a leading supplier of networking processing semiconductor technology ported on field programmable gate arrays ("FPGAs") for virtualised networking appliances, notes the recent rise in the Company's share price.
As announced on 24 October 2023, the Company is in discussions with 5G Innovation Leaders Fund LLC (the "Subscriber") to seek to come to an agreed position on the treatment of the subscription agreement, details of which were announced on 25 February 2022 (the "Subscription Agreement") during the Temporary Suspension of Proceedings ("TSP") process (as announced on 16 October 2023) and further updates will be provided in due course. These ongoing discussions include the validity of the settlement notice referred to in the Company's announcements on 20 October 2023 and 24 October 2023 ("Settlement Notice") and the Company remains of the view that the Settlement Notice was not issued validly. There can be no guarantees as to the outcome of the discussions with the Subscriber.
As noted in the Company's announcement on 12 October 2023, as part of the temporary operating plan during the TSP, the Company will be putting in place interim funding up to a total of 1,000,000 NIS which will allow the Company to continue operating as a going concern. David Levi, CEO, has agreed to provide this interim funding to the Company and a further update on this will be announced shortly, once the financing has been put in place. Any such loan to the Company would be approved by the Court and entitle the lender to be repaid as a priority creditor in any insolvency process, in accordance with the requirements of the TSP.
In addition, the settlement manager has filed a report requesting to extend the TSP period until the end of December 2023, and an update will be announced should the extension be approved.
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